Fed's George: Criteria for bond taper have been met
|Kansas City Fed President Esther George said on Friday that the criteria for bond taper have been met and added that the case for ongoing monthly asset purchases has waned, as reported by Reuters.
Additional takeaways
"Pandemic and policy response has pushed consumption, labor choices, out of equilibrium; normal patterns likely to emerge but may take time."
"Return to normal should allow continued growth, moderating inflation, but some changes from the pandemic may persist."
"Once taper is complete, Fed will face a complicated discussion about size of balance sheet."
"Impact of balance sheet on longer-term rates will be an influence on fed decisions about changes to the target federal funds rate."
Market reaction
The greenback continues to outperform its rivals following these remarks and the US Dollar Index was last seen gaining 0.3% on the day at 93.36.
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